JOHANNESBURG (miningweekly.com) – Aim-listed Shanta Gold has received $10-million in financing from Exim Bank Tanzania following the commissioning of a 7.5 MW power station, at its New Luika gold mine, in Tanzania.
The four-year term loan will amortise quarterly, bearing variable interest at 7.25% a year.
"This power station is now delivering reliable power with a significant drop in per kilowatt-hour power costs,” Shanta CEO Tony Bradbury said.
In 2016, Shanta decided to pay the capital costs of the power station out of cash flow in anticipation of improved financing terms, which it has now realised with the Exim term loan.
Bradbury pointed out that the power plant's commissioning will deliver the increased power required to support the new underground operation that remains on schedule to deliver first stope ore this quarter.